Leon's teaming up on RTO, e-commerce
By Michael J. Knell -- Furniture Today, April 24, 2005
Toronto — Major Canadian retailer Leon's Furniture will test the rent-to-own market in a joint venture with Easyhome, the country's largest RTO merchant.
In another arena, Leon's also is partnering with U.S.-based Furniture.com to sell furniture, appliances and electronics online to Canada's 32 million consumers.
Easyhome will set up an RTO kiosk in Leon's Toronto West store to give shoppers a rental-purchase option.
"We are there to provide a service to the customer who can't get credit for the TV or piece of furniture they're looking for," said Easyhome President and CEO David Ingram. He said Easyhome will purchase product from Leon's and will compensate Leon's associates for new business.
Easyhome has 147 stores across Canada and is the fourth-largest RTO operator in North America. Like Leon's, it offers furniture, appliances and electronics.
"This is a great opportunity for both Leon's and Easyhome," said Ingram. "Many of our customers come to Easyhome after shopping at Leon's because financial status has limited their ability to complete a transaction at their Leon's location."
Ingram said the test will run about 180 days and, if successful, will be expanded to as many as five more corporately owned Leon's stores, then perhaps to Leon's franchises.
The alliance between Easyhome and Leon's isn't unique. In Canada, The Brick has a similar arrangement with Insta-Rent, the new company started by former RTO Enterprises head Gordon Reykdal. Levitz and Rentway are working on a similar project in the United States.
In the online sales venture, Leon's and Furniture.com have signed an agreement that gives Leon's exclusive rights in Canada to Furniture.com's Web address and online sales and customer service e-commerce platform. The platform is billed as a fully transactional solution that provides, among other things, order status, delivery dates and account information.
The agreement takes Furniture.com international and introduces it to two new categories, appliances and electronics.
"Our mission (is) to help drive Leon's sales, streamline Leon's customer service and expand Leon's operations," said Carl Prindle, Furniture.com president and CEO. "We will attract new online consumers and drive incremental sales for Leon's, as well enhance their already highly respected operations and array of customer services."
Prindle said Furniture.com is likely to add "a high percentage of Leon's inventory" to its Web site in the second half of this year. The company also will work with Leon's to develop e-commerce for Leon's current Web site at www.leons.ca.
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